Sentencing postponed for mother, son convicted in fraud case

Two central players in a $143 million mortgage-investment scam that rocked Southwest County last decade will wait at least until summer to learn their fate, after the hiring of an attorney triggered a postponement Monday of a sentencing hearing in Riverside Superior Court.

The family of Hendrix Montecastro, 40, of Baltimore, said to be the scam ringleader's right-hand man, hired Riverside attorney Daniel L. Greenberg on Thursday.

Greenberg told Judge Jeffrey Prevost he was retained to represent Montecastro at sentencing, and to review the estimated 8,000 pages of transcripts of the recently completed four-month fraud trial to determine if there are grounds for seeking a new trial. The judge granted Greenberg's motion for a postponement.

Prevost set a June 4 date to review the status of Greenberg's investigation, with sentencing possibly to occur within 60 days after that. Greenberg said after the hearing he does not expect to receive transcripts for up to a month and may request another delay.

During the brief hearing, the judge also granted a request to appoint counsel for Montecastro's mother. That lawyer is to come from a pool of attorneys managed through a county indigent defense contract.

On March 25, a jury convicted Montecastro of 304 felony charges in connection with the losses of 33 people totaling $3.6 million between 2005 and 2007, and unauthorized use of the name of Pacific Wealth Management, a legitimate San Diego firm.

His mother, 61-year-old Helen Pedrino of Murrieta, was found guilty of 54 felonies. Testimony indicated she was the scam's leading recruiter, signing up fellow nurses, friends from church and members of the local Filipino community.

On Monday, the judge dismissed 13 of Pedrino's convictions as well as enhancements on two of Montecastro's felonies. Chief Deputy District Attorney Vicki Hightower said those changes were intended to fix clerical errors in documents filed by the district attorney's office.

Hightower said she has requested sentences of 124 years in state prison for Montecastro and 17 years, 8 months for Pedrino. She is also seeking restitution for victims involved in the case through the frozen bank accounts of seven scam defendants.

"I don't know if there is any money in the accounts," Hightower said. "But if there is, I want it to go for restitution."

She said victims also may be entitled to relief through a Corporate Fraud Restitution Fund administered by the state.

Montecastro and Pedrino were the only defendants charged in the case who went to trial. The others reached plea agreements. Among those pleading guilty were James Duncan, 42, formerly of La Cresta, who testified during the trial and is expected to be given a sentence of 19 years, 8 months.

Duncan testified in December that his team persuaded recruits to pay as much as $100,000 above asking price for investment homes during the housing boom of last decade, with the promise to invest the difference on their behalf. Instead of investing on clients' behalf, team members pocketed the money, he said.